File Photo: Apache seismic trucks in a location in Egypt. Photo: Company's website.
The newly drilled SKAL-1X exploration well is also expected to yield 2,700 barrels of condensate daily. It is located in the South Kalabsha or Kalabsha Development area, operated by Khalda Petroleum Company, a joint venture between EGPC and Apache.
Apache has been expanding its production operations in Egypt, increasing its presence in the Western Desert. The company’s total investments in Egypt now exceed $4 billion.
The discovery aligns with Egypt’s plan to increase domestic energy production to meet growing demand. The country aims to drill around 101 new exploratory oil and gas wells in 2026 and over 480 wells across all petroleum-producing areas as part of a five-year strategy.
Egypt is also accelerating operations to secure additional LNG shipments and adjusting supply flows following the suspension of Israeli gas supplies due to the ongoing US-Israeli war on Iran, amid concerns that the disruption could continue.
The new well discovery comes amid recent domestic fuel and gas price hikes, driven by escalating regional tensions affecting global energy markets.
Earlier this month, the government raised fuel and gas prices by 14-30 percent to maintain energy supplies for electricity, industry, and housing, while global crude prices exceeded $90 per barrel.
Other recently discovered wells in the Western Desert include Badr El-Din Petroleum Company’s BED 15-35 well, expected to produce 10–15 MMcfd of gas and 300–650 barrels of condensate daily.
Egypt plans to drill over 100 exploratory wells in 2026 alone, alongside development drilling in existing fields, to maximize resources, secure new energy reserves, and slow production declines as exploration activity intensifies.
These efforts aim to reduce fuel imports, limit reliance on foreign energy, and strengthen domestic energy reserves. The government also said it will clear all remaining payments owed to oil and gas production partners, amounting to $1.3 billion, by the end of June 2026.
Currently, Egypt produces about 4.1 billion cubic feet of gas per day, while domestic demand is around 6.2 billion cubic feet per day.
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